SFR Acquisitions; A 29 Pack Portfolio Purchase – July and August 2025

SFR acquisitions

 

 

Investment Summary on the 29 Pack Mostly-Rented Portfolio Purchase

 

The acquisition team was able to locate and negotiate an extremely favorable opportunity in this 29 Pack.

The thought process is that while picking up value-add SFRs one by one is a profitable model we have perfected, it typically takes up to nine months before a property is cash-flowing. That time lag has a cost. When we can vet every home in a discounted rental portfolio to our satisfaction, we can apply our other model—purchasing rented properties—and have them perform right away.

Our value-add property purchases typically need about $100,000 until stabilization in order to achieve top rent of $1,200.

In contrast, this pre-existing portfolio was quite attractive at $52,000 a door, because of the below components

  • mostly in areas we focus
  • priced at $52,000 a door; less serious capital expenditure to follow
  • mostly rented at $720 a door; possible rental raise in play immediately after the closing

Out of the 29, only three properties, (5203 Beaconsfield, 11123 Wayburn, 13636 Pinewood) were vacant.

All the properties were given a visit that included a full inspection and renter interview followed by a repair estimate. Many of the rented properties were basically underwritten for $5,000 capital expenditure per property.  Some, including a few that are rented, needed more work, bringing the average capital expenditure per unit to $10,000.

 

 

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SFR Acquisition #30 – 15750 Sorrento, A Solid All-Around Win With A Bright Future

SFR acquisitions

 

Investment Summary:

 

We purchased this property with a great tenant.  Some of the internals show the tenant keeps a great house.  This acquisition is by the playbook.  Purchase a great undervalued property in a good neighborhood, make sure the tenant is thoroughly vetted before the purchase, check the internals carefully including appliances such as the furnace and the hot water tank, do very little except  to make sure the property is managed well, and sit down and collect rent.  

Zillow is not showing a Zestimate for this property, but shows the home listing was removed at $80,000 last.  The number featured, $83,000, is the last sold price in 2022, not its Zestimate.  

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SFR Acquisition #29 – 19730 Fenmore, An Unbelievable 19% Cash-on-Cash Return Realized

SFR acquisitions

 

Investment Summary:

We purchased this property with a good tenant with a 5-year history. 

The renter agreed to a rent increase of $100 after closing.  The acquisitions team flagged many updates as necessary for this property, but advised the managing partners that they could get them all done without removing the tenant, because much of it would be exterior work, such as siding and windows.  There was some work in the kitchen area as well.

In fact, we ended up using half of the capital expenditure we earmarked because the tenant did not want the kitchen updates that were offered.  The tenant still agreed to a rent of $1,000.00 starting August 1, 2025 after repairs were completed to her satisfaction.

Zillow has the property valued at above $60,000 in November 2025.

That would bring the equity growth close to 30%, which is an extraordinary outcome, based on the fact that we started cash-flowing from day one, with no downtime.

The simple return on capital for this property (pending property tax revisions) will start at a whopping 19%.  Again, this may readjust as property taxes may rise after the change in ownership.

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SFR Acquisition #27 – SFR Acquisition #27 – 14660 Bringard by 8 Mile: Immediate Equity Creation Upon Acquisition

SFR acquisitions

Investment Summary:

We closed on this property on 2025-03-31 with a tenant who was paying $800 a month.  This property was under property management through our trusted local partner, Own It Detroit – Mutual Property Management since 2018.  The renter agreed to a $100 rent increase after closing, and in exchange, we offered some CapEx updates in the kitchen and the bathroom.

Zillow has the property valued at $80,700 in September 2025; however, based on the property’s internal condition, we have given it a more conservative internal valuation of $70,000.  For reference, this area’s average property values are above $83,000 today.

The equity we gained is about 23%, which is an extraordinary outcome, based on the fact that we started cash flowing from day one, with no downtime.

The simple return on capital on this property (pending property tax revisions) will start at an annualized 12.7%.

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